Bitcoin is at a critical juncture as it tests the 21-period weighted moving average (21 WMA) against the 21-period simple moving average (21 SMA) on the 2-week chart. Historically, this crossover has marked significant trend shifts in Bitcoin's market cycles. Analyst Crypflow highlights that a crossover where the 21 WMA moves above the 21 SMA typically signals a bull market, while the reverse indicates a bear market.
Currently, Bitcoin is attempting to break above the 21 WMA, which stands at approximately $81,974, with the 21 SMA at $90,415. Last week, Bitcoin briefly surpassed the 21 WMA, reaching around $82,000, but has since retreated to about $76,900. This movement suggests Bitcoin is testing the "ribbon" but remains below the critical resistance level.
Traders are closely monitoring whether Bitcoin can sustain a move above these averages, which would confirm a new bull market. Failure to do so could reinforce the ongoing corrective phase following the 2025 peak above $126,000.
Bitcoin Tests Key Moving Average Crossover for Bull Market Signal
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